<<

POLICY NOTE 2011 – 2012 CONTENTS Sl. Headings Pages No. INDUSTRIES DEPARTMENT Introduction 1-7 1. Industrial 8-21 Development Corporation Limited POLICY NOTE 2. State Industries Promotion 22-35 Corporation of Tamil Nadu Limited 3. Tamil Nadu Industrial Investment 36-41 Corporation Limited 4. Tamil Nadu Newsprint and Papers 42-46 DEMAND No.27 Limited INDUSTRIES 5. Tamil Nadu Cements Corporation 47-52 Limited 2011–2012 6. Tamil Nadu Minerals Limited 53–56 7. Tamil Nadu Magnesite Limited 57 8. Tamil Nadu Industrial Explosives 58-60 Limited S.P. VELUMANI 9. Tamil Nadu Salt Corporation 61–64 Limited MINISTER FOR INDUSTRIES 10. Tamil Nadu Industrial Guidance 65-66 and Export Promotion Bureau 11. Department of Geology and 67-75 Mining © 12. Sugar Industry 76-81 2011 INDUSTRIES DEPARTMENT industry revolution in Tamil Nadu by attracting POLICY NOTE major projects from Industrial giants. These 2011-12 major projects triggered a multiplier effect by INTRODUCTION attracting a large number of auto and other Traditionally, Tamil Nadu has always ancillary industries. been in the forefront of industrialisation with a The Policy of the Government has been strong presence in the manufacture of “To maximize the welfare of the engineering and auto components, textiles, people of Tamil Nadu by creating gainful leather, sugar etc. During the post employment opportunities by achieving liberalisation period since 1991, private Sector higher and sustainable economic growth began to take over the lead in the industrial with emphasis on balanced regional development of the country. In the changed development through greater private and scenario, States started taking the initiative in public investment in Manufacturing and the new and competitive environment and infrastructure development”. Tamil Nadu was one of the earliest to seize the Current status of Economy in Tamil Nadu opportunity and announced its Industrial Policy in 1992 itself. This policy became the Tamil Nadu is currently ranked the Fifth cornerstone and laid the foundation for the largest economy among the States in rapid growth of new industries in the State. with the share of secondary sector being This policy became the harbinger of growth 27.39%. The total number of factories in the that facilitated the electronics and automobile State is 26,122 and the value of industrial out

2 put was ` 3,00,801 crores during 2008-09 key sectors like automobile and auto parts, (Source-Annual Survey of Industries, IT, ITES, textiles, leather, engineering ). goods etc., and make the State a hub of the manufacturing sector. This Government will lay The State, which had a robust growth rates in special emphasis on the newly emerging 2005-06, has slowed down a little bit, as the sectors like bio-technology, nano- following table illustrates: technology and pharmaceuticals” 2005-06 2009-10 SDP Growth 13.3 % 8.96 % rates (%) (AE)** Further Hon’ble Chief Minister also recently Secondary 12 % 8.8 % announced that the State Government will sector (AE)** Manufacturing 14.6 % 11.1% bring out a policy document “Vision 2025” for sub-sector Tamil Nadu. Steps will be taken towards (** AE – Advance Estimates) achieving this long term goal by making the The State Government has a vision to State more investors friendly and creating the lead Tamil Nadu once again on a path of long infrastructure required to attract fresh term development which is sustainable and investment into the State. To achieve the No.1 balanced. position among Indian States, the Government In the Governor’s address of June 2011, of Tamil Nadu brought out a pragmatic and far the Government’s priority for industrial growth sighted Industrial Policy in the year 2003 which was captured as follows:- paved the way for the Electronics revolution in

“It will be the endeavour of this Government to Tamil Nadu by attracting substantial foreign attract top industrial houses for investment in and domestic investment into the State.

3 4

Based on the impetus provided by the Policy, As industrialization fundamentally has become one of the world’s involves acquisition of land, a mutually largest Electronic goods and automobile beneficial and partnership based Land Policy manufacturing hub. Observing the growing would be evolved. global trend of specialized industrialization and Emphasis of Infrastructure Planning and to attain the objectives of the Government as Development spelt out in the Governor’s Address, Sector Industrial development depends on the specific policies would be formulated-Bio- spread and quality of infrastructure available technology and pharmaceuticals, automobile and planning will be done in anticipating future and components, and Renewable Energy would infrastructure requirement and in attracting be considered for framing sectoral policies. private investment into infrastructure. In this

Formulation of New Industrial Policy regard, “Tamil Nadu Infrastructure In the recent past, certain fast growing Development Board” will be created. States have formulated liberalized investment Dispersal of Growth policies with a view to attracting more The State fully recognizes the need for domestic and foreign investment. In such a spreading the new industries into all regions of competitive environment, to regain the top this State particularly on the less developed place in industrialization and to improve the regions of South Tamil Nadu. To this end, momentum of growth, a comprehensive New creation of industrial corridors, extension of Industrial Policy would be brought out. special packages, and creation of new

5 6 infrastructure in such regions will be given TAMIL NADU INDUSTRIAL DEVELOPMENT CORPORATION LIMITED importance.

Tamil Nadu Industrial Development To sum up, a position of Tamil Nadu in Corporation Limited (TIDCO), a Government of the Industrial map of India will be consolidated Tamil Nadu Enterprise, was incorporated as a at the top by adopting a multi-dimensional Limited Company in the year 1965 in order to approach and at the same addressing identify and promote the establishment of large aspirations and issues of all the stake holders and medium scale industries within the State of involved. Tamil Nadu in association with the private sector. The company’s authorized share capital is ` 125 crore of which ` 72 crore has been subscribed by the Government of Tamil Nadu. TIDCO’s projects cover a wide range of activities such as Iron & Steel, Fertilizers, Chemicals, Petrochemicals, Engineering, Automobiles, Agro and Food Processing, Leather, Textiles, Pharmaceuticals, Floriculture, Horticulture, Electronics & Communication, I.T. Parks / Infrastructure / Industrial Parks including Agri Export Zones (AEZs), Special

7 8

Economic Zones (SEZs) and Special & Entertainment Park, an Aerospace Park, LNG Investment Regions. Terminal, Natural Gas Pipeline network, Sports City, Golf Course, Food Processing SEZ, Bio TIDCO’s portfolio of investments valued Technology Core Instrumentation Facility and at cost is ` 330 crores, mostly in the form of Expansion of projects. equity investments in Joint Venture Companies and investments made in ongoing projects. Projects

TITAN Industries, Tamilnadu Petroproducts, Petroleum, Chemicals and Petrochemicals , TICEL Biopark, Mahindra World Investment Region

City, Ascendas IT Park, IT Expressway and As per the policy announced by the Chennai Trade Centre are some of the better Government of India for establishing known examples of TIDCO’s Industrial and Petroleum, Chemicals and Petrochemicals Infrastructure initiatives. Investment Regions (PCPIR), Government of

Tamil Nadu sent a proposal for setting up a TIDCO is developing IT and ITES SEZs PCPIR in Cuddalore and Nagapattinam such as TIDEL II, TIDEL III at Taramani and Districts. The High Powered Committee of Shipyard and Minor Port Complex at Government of India chaired by the Cabinet district and Multi Product SEZ at Nanguneri. Secretary has approved this proposal. This TIDCO is also planning multi product SEZs at PCPIR will be notified by Government of India , Perambalur and Krishnagiri. As per the after approval by the Cabinet Committee on direction of Government, TIDCO is taking steps Economic Affairs. for implementing the Financial City and Media

9 10

Petroleum Refinery Project of Nagarjuna Thiruchopuram port, the captive port of Oil Corporation Limited the refinery project will be developed as an all

Nagarjuna Oil Corporation Limited (NOCL), weather deep sea port to handle the crude oil, a Joint Venture of TIDCO is implementing a 6 petroleum fuel, coal for Tamilnadu Electricity million tonnes per annum capacity Petroleum Board and other cargo. This port will serve Refinery Project at Thiruchopuram in Cuddalore Cuddalore, Villupuram, Thiruvannamalai, Salem, District at a total investment of about ` 7,160 Namakkal, Karur, Perambalur and Ariyalur crores. Additional investment of ` 2,500 crores districts for the development of industry and is being made in key infrastructure facilities trade. such as Captive Port, Tankages and Captive Shipyard - cum-Minor Port Complex in Power Plant by NOCL’s Associates. This project will be commissioned in December, 2011. A world-class Shipyard cum Minor Port Complex is under construction in NOCL has also commenced preliminary village, Taluk of Tiruvallur District engineering work for expanding its refining through a Joint Venture company of TIDCO and capacity to 15 million tonnes per annum with an M/s. Larsen & Toubro Limited viz. L&T additional investment of about ` 12,000 crores. Shipbuilding Limited. This Complex will include This expansion will be completed by 2015. manufacturing units and facilities for building Employment generation during the construction cargo carriers, Defense ships including period will be for about 5,000 persons, which will Submarines, Off-shore platforms for oil / gas go up to 10,000 when the refinery goes into full sectors, re-engineering of commercial and operation.

11 12 defense ships and heavy engineering Kattupalli village of Tiruvallur District with an fabrication and components production for ship investment of about ` 10,000 crores has been building. planned. The proposed LNG Terminal will have The total investment for this project has a capacity to handle 5 million tonnes per year been estimated at ` 4,675 crores. The project of LNG and is expected to commence its is implemented in two phases; Phase I will operations in 2015. It will distribute about 18 require an investment of about ` 3,375 crores. million cubic metre per day of natural gas for The Phase I of the project will be power plants, fertilizer units, industrial, commissioned in December, 2011. This domestic and transportation sectors in Tamil shipyard complex will generate direct and Nadu. TIDCO signed a Memorandum of indirect employment for about 10,000 persons. Understanding with Indian Oil Corporation LNG Import Terminal Project at Kattupalli Limited, a Government of India Enterprise to Village of Tiruvallur District implement this project as a Joint venture. IOCL

To meet the State’s growing demand for has commenced the process for carrying out energy especially the Natural Gas which is an Front End Engineering and Design. The State efficient and environment friendly fuel, it is Government has granted a package of essential to position a firm source for natural incentives for the proposed LNG Terminal gas in the long term. Towards this, a project project. for setting up a Liquefied Natural Gas (LNG) TRIL Info-park Limited (TIDEL – III)

Import Terminal and Related Gas Pipeline To encourage and attract further Infrastructure near Ennore Port in the investments in the IT-ITES Sector, an IT-ITES

13 14

SEZ was proposed to be established on about BSL 3) with a built up area of 6 lakh sq. feet at 25.27 acres of lands at Taramani adjacent to a project cost of ` 150 crores. The Civil work the TIDEL Park as a Joint Venture of TIDCO was commenced at the site and the project is and a private sector partner. The Consortium scheduled for completion by December, 2011. led by M/s. Tata Realty and Infrastructure The Bio Tech Park II will create employment Limited was selected as the Joint Venture potential for 1,500 scientists. Partner for this project through an open IT Park at Coimbatore competitive bidding process. A total of 3.4 million sq.ft. of built up space is being An IT Park with built up area of 1.7 constructed in the Processing Zone. 1.30 million sq.ft. is being constructed in IT SEZ, million sq. ft. space has already been leased Coimbatore by TIDEL Park Coimbatore Limited, and the balance space will be constructed a Joint Venture of TIDCO, TIDEL, ELCOT and along with an International Convention Centre STPI with an estimated cost of ` 350 crores. and serviced apartments by end of 2012. This I.T. Park is expected to be ready by October, 2011 for commencement of operation Biotechnology Park II and will provide employment opportunities to TICEL Bio Park Ltd, a Joint Venture of 12,000 IT professionals. TIDCO and TIDEL has established a state-of- the-art Biotechnology Park-I at Chennai, which Perambalur SEZ are all functioning. TICEL is constructing TIDCO selected M/s GVK Group of Biotechnology Park II for catering to the needs Hyderabad as the JV Partner. An SPV of Biotech Research & Development (BSL 2 /

15 16

Company viz. M/s GVK Perambalur SEZ Private ii. Development of an Industrial Park in Limited has been formed. The SPV Company around 100 acres exclusively for aircrafts has purchased around 2,900 acres of private components manufacturing industries in land through negotiations. Formal approval for . the multi product SEZ has been received from iii. Setting up of a Satellite MRO facility Government of India. M/s Mahindra Consulting adjoining the Chennai Airport in an area of Engineers is appointed as the consultant for around 50 acres. preparing Master plan and detailed project report. The site development work and iv. Creating an Integrated Aerospace Park in construction work will be taken up after an area of around 3,000 acres in receiving the SEZ notification from Government Perambalur SEZ project with focus on of India. manufacturing & assembling of aircrafts.

Creating an integrated Aerospace Park, Aerospace Park Project which can support the assembling of For supporting the growth of aerospace indigenously designed aircraft, is the industries, an Aero Space Park project is ultimate objective of this programme. planned. The following is proposed:

TIDCO is in the process of identifying land i. Securing SEZ status to “M/s. Taneja for MRO facility near Chennai Airport and has Aerospace and Aviation Ltd.” for its existing requested SIPCOT to allocate 100 acres of limited facility and Expansion in Hosur for land in Sriperumbudur for component the Development of Aerospace Park.

17 18 manufacturing Park. M/s L&T-Ramboll has as Phase-1. The Company has acquired about been appointed as the consultant to carry out 106 acres of land in Vallur and the Feasibility Study and Marketing Assistance. villages through private negotiation. The Consultants has submitted the final report IT Corridor Project to TIDCO. IT Corridor Project ()

Free Trade Warehousing Zone in Tiruvallur that starts from Temple District Junction and terminates on East Coast Road

Jafza Chennai Business Park India near is being implemented in Private Limited (Jafza Chennai) has proposed two Phases. In Phase-I, 20.1 km stretch to establish a Free Trade Warehousing Zone between Madhya Kailash Temple Junction and which includes Logistic Park & Business Park at and 2.1 km long ECR Link Road an estimated project cost of ` 441 crores in connecting IT Corridor is being improved. In 337 acres of lands in of Phase I, the work relating to CMWSSB on the Tiruvallur District. Government of India western side and construction of Service road granted Formal Approval for this project. and Foot Path is under progress. In Phase-II, When this project is fully commissioned, it may the stretch between Siruseri and generate employment opportunity for 500 Mamallapuram will be improved. persons. Financial City The Company has proposed to The land to an extent of 187 acres was commence the implementation of the project in identified in and 135 acres at an estimated cost of ` 190 crores villages of Rajiv Gandhi Salai for establishing

19 20 the Financial City and Media & Entertainment STATE INDUSTRIES PROMOTION CORPORATION OF TAMIL NADU LIMITED Park Projects. The Consortium led by M/s. Price

Waterhouse Coopers Private Limited (PWC) has State Industries Promotion Corporation been appointed as consultants for preparation of Tamil Nadu Limited (SIPCOT) was started of Comprehensive Development plan. TIDCO during the year 1971 with a vision to play a will finalise the reports in consultation with the catalytic role in the development of balanced Government. Tenders will be floated for industrial growth in the State of Tamil Nadu. selection of developer / joint venture partner SIPCOT was instrumental in promoting medium for developing the first phase of the Financial and large industries by way of extending City project in an area of 25 acres of land. financial assistance till the year 2000 and thereafter concentrating on the development of infrastructural / industrial parks. SIPCOT has been playing an important role in bringing in investment from multinational companies and contributed to the development of backward areas of the State. Physical Achievements Development of Industrial Complexes / Parks SIPCOT has so far developed 19 Industrial Complexes in different parts of the State and allotted an extent of 17,889 acres of

21 22 developed land to 1,979 units resulting in land has been established at Thervoykandigai, direct and indirect employment opportunity for , Thiruvallur District. In about 4.50 lakh persons. The total extent this Park, 290 acres have been allotted to M/s. acquired since its inception is around 27,115 Michelin India Tamilnadu Tyres Private Limited acres. This apart, proposals for acquiring of and 85 acres to Harsha Group based on the land for creation of a Land Bank to keep MoU entered between the Companies and the adequate land readily available to meet the Government. Besides this, 128.07 acres have immediate requirement of the needy investors been allotted to 3 units including Tamil Nadu are under process. This proposed Land Bank is Electricity Board. Through these allotments, developed by acquiring dry and barren lands there would be an investment of ` 6,817 crores by carefully avoiding cultivable lands. and employment opportunity to 5,150 persons.

The Government of Tamil Nadu have Mappedu Industrial Complex signed MoUs with several major industries for A new industrial complex has been setting up their facility in the State of which, established in Thiruvallur District at Mappedu 30 of them are located in the Industrial with 123.08 acres of Government poramboke Complexes of SIPCOT and of this, twenty land and the entire extent has been allotted to industries have already commenced Trust for setting up an Integrated production. Dry Port and Multi Model Logistics Hub with an Thervoykandigai Industrial Park investment of ` 260.50 crores and with an During 2009, a new industrial complex employment potential of 700 persons. with 1,127 acres of Government poramboke

23 24

Manamadurai Industrial Complex (Vallam – Vadagal) Expansion (1,780 acres), In SIPCOT industrial complex at Expansion II (616 acres), Madurai Manamadurai, located in one of the most Industrial Park (1,478 acres) and New backward regions of the State, 94.99 acres of Industrial Park at Villupuram District (720 land has been allotted to M/s. Unity Appliances acres). This will enable SIPCOT to keep ready Limited a group company of Videocon, for 7,900 acres of land for allotment to industries. manufacturing colour television sets and Industrialization of Southern Districts electronic consumer durables with an investment of ` 1,500 crores. Apart from this, The Corporation has already established 4.76 acres has been allotted to a unit as the industrial complexes in some of the southern vendor of Unity Appliances; 30.44 acres have districts viz. Thoothukudi, Tirunelveli been allotted to a unit belonging to the Group (Gangaikondan), Dindigul (Nilakkottai), of Videocon for setting up a Solar Photovoltaic Pudukkottai and Sivagangai (Manamadurai). It power plant. is now in the process of developing a new On-going Land Acquisition Schemes industrial complex (1,478 acres) in

Following the administrative sanctions Thirumangalam Taluk, Madurai District and issued by the Government, acquisition of lands acquisition of land for this complex is in is in progress now in respect of the following progress. Setting up of one more industrial schemes: complex (1,533 acres) in Ottapidaram Taluk in Thoothukudi Phase II (1,179 acres), Cheyyar Thoothukudi District is also in process now. Expanion (2,300 acres), Sriperumbudur

25 26

Special Economic Zones obtained. Out of the allotable area of 300 SIPCOT has actively promoted seven acres, so far, SIPCOT has given in-principle Sector Specific Special Economic Zones in its allotment to 47 units for an extent of 254.00 Industrial Complexes / Parks, each for a acres and the number of applications pending specific sector, viz. Electronic / Telecom for seeking allotment is 38 units for 111.50 Hardware SEZ, Sriperumbudur (570.92 acres), acres. Electronic Hardware SEZ, Oragadam (347.66 Industrial Corridor of Excellence acres), Engineering Sector SEZ, Perundurai SIPCOT has taken up a study for the (263.19 acres), Transport Engineering Goods preparation of Corridor Development plans SEZ, Gangaikondan (255.00 acres), Footwear to develop Chennai-Sriperumbudur-Ranipet- and Leather Product SEZ, Hosur, Madurai-Thoothukudi and Coimbatore– (153.68 acres), Engineering SEZ at Ranipet Salem regions as Industrial Corridors of ( 260.00 acres) and Granite processing SEZ at Excellence, where Industrial Parks, Special Bargur (379.96 acres). Economic Zones, IT Parks and Integrated

Township would be created with all SEZ for Granite processing industry at Bargur infrastructure facilities of international standard

and connected to Airports, Sea Ports through A Sector Specific SEZ for Granite Express Highways and Railway lines. The processing industry was established at Bargur preparation of Corridor Development Plans with an extent of 379.96 acres, which is first of separately for each region is in progress now. its kind in India and approval and Notification The final plan for Chennai-Sriperumbudur- from the Government of India have also been

27 28

Ranipet, 1st Phase is completed and the draft depending on their skill. Skill Development plan for Phase II is in progress. Centre in SIPCOT Oragadam Industrial Growth Centre is under construction at an estimated Skill Development Centres cost of ` 196.00 lakhs. Pursuant to the announcement made by Social Infrastructure facilities the Government, SIPCOT has been taking While acquiring lands for its industrial effective steps to provide employment to at complexes, SIPCOT is also concentrating on least one person from the families, who have the implementation of social infrastructure given land of one acre and above for its facilities in and around the acquisition site to Industrial Complexes. The enumeration work to benefit the local people such as provision of identify the youth in those families has since houses to the displaced families, sanitation to been completed and further action is being village hamlets, construction of new school pursued. Further, to upgrade the skill of the buildings/ renovation of the existing schools, youth, SIPCOT has been taking action to create establishing health centres, burial ground, three Skill Development Centers, one at fodder cultivation scheme, sports development Gangaikondan Industrial Growth Centre, activities, water facilities etc.. At present, such Tirunelveli District, the second at Thervoy facilities are being provided in the industrial kandigai Industrial Complex, Tiruvallur District complexes at Oragadam (Expansion) and at and the third at Oragadam Industrial Growth Thervoykandigai. Centre, Kancheepuram District. The youth Further, SIPCOT has been taking action trained in these Skill Development Centers to construct two dormitories with all amenities, would be recommended for employment

29 30 one at Sriperumbudur and the other at Sriperumbudur and Irungattukottai Industrial Tiruppur, each to accommodate 1000 workers Parks is to be executed through a private both women and men. SIPCOT has identified operator by Chennai Metropolitan Water Supply suitable site at Nerupperichal, Tiruppur (land to & Sewerage Board (CMWSSB). be acquired) and other one at Sriperumbudur Comprehensive Plan for the Development SIPCOT Industrial Park. The construction of of Sriperumbudur Area Dormitories Building for men and women at Pursuant to the Government Sriperumbudur is under progress. announcement, SIPCOT is preparing a

Attracting Foreign Investment from MNCs comprehensive plan to upgrade the basic and SIPCOT has proposed to allot 100 acres social infrastructure and provide modern of land each for setting up of separate housing facility to the employees and the Industrial Parks for investors from countries general public residing in and around like Japan, Korea, Finland, Germany and Sriperumbudur. The consultant has submitted France to attract more foreign investments the draft final report. from them. Acquisition of lands for the Environment Protection proposal in Sriperumbudur Expansion Scheme As per the directions of the Supreme is in progress now. Court Monitoring Committee, Hazardous Waste Water Augmentation Project Treatment, Storage and Disposal Facility A novel scheme to convert secondary (HWTSDF) is implemented in an extent of treated sewage through TT-RO process for the 26.91 acres at SIPCOT Export Promotion usage of industrial units located at Oragadam,

31 32

Industrial Park, Gummidipoondi, by Industrial Panchayat Union road km 0/0 -1/600- Waste Management Association (IWMA) Scheme Cost ` 12 crores. through Tamil Nadu Waste Management 2. Connecting road from Highways, Limited (TWML). Thiruvallur District, Soolaimeni – Civil Works Thervoykandigai Road km 0/000 – SIPCOT has been focusing on providing 4/200. - Scheme Cost ` 22 crores world class infrastructure in its industrial complexes in order to attract more investors. SIPCOT has also formed a Special During the year 2010-11, works relating to Purpose Vehicle (SPV) to upgrade the existing roads, water supply, street lights, sewerage infrastructure facilities at Hosur to international system, buildings, etc. were taken up in a total standard. This SPV will also facilitate to avail outlay of ` 200 crores. For the usage of the the grant from Government of India under industries located in Bargur and Thervoy Industrial Infrastructure Upgradation Scheme kandigai Industrial Complexes and the (IIUS). surrounding villages, the following two road Nodal Agency Function works to connect to the State Highways are SIPCOT also acts as a Nodal Agency of being carried out through Highways Government of Tamil Nadu in the sanction / Department as depository work. disbursement of Structured Package of 1. Two Way connecting road km 5/150 – Assistance to large industrial units. Various 10/000 in Pochampalli – Kodamandapatti incentives like Refund of output VAT + CST in road and Bargur, Krishnagiri District the form of Soft Loan / Investment Promotion

33 34

Subsidy, Input VAT Refund, Capital Subsidy, TAMILNADU INDUSTRIAL INVESTMENT CORPORATION LIMITED ETP/Critical Infrastructure Subsidy, Training

Subsidy etc. are extended based on the Activities

Government Orders. So far, SIPCOT has Tamil Nadu Industrial Investment received Government orders sanctioning Corporation Limited (TIIC) is the pioneer Structured Package of Assistance to 56 among State Financial Corporations in the industrial units. SIPCOT has so far released country. Since its inception in 1949, it has ` 1110.50 Crore to ten units. been contributing significantly towards the

industrial development of Tamil Nadu. The main objective of TIIC is to foster industrial growth by providing long term financial assistance to industries for purchase of land, construction of building, purchase and erection of machinery etc. TIIC also offers loan assistance for service sector projects such as hotels, hospitals and tourism related projects. TIIC provides assistance to the Micro, Small & Medium Enterprise (MSME) sector and acts as a catalyst for industrial promotion in the State by creating a new generation of entrepreneurs. About 90% of the assistance goes to MSME

35 36 sector. Of this, about 50% goes to first The loan portfolio of the Corporation as generation entrepreneurs. In addition, TIIC on 31.03.2011 is ` 1351.23 crores facilitates release of eligible subsidies offered (provisional) and the long term objective of by the State and Central Governments to the TIIC is to increase the same to ` 5,000 crores. beneficiaries. During the last year, TIIC has TIIC is also providing training to budding drawn and disbursed ` 10.29 crores as subsidy entrepreneurs by conducting Entrepreneur from MSME Department, Government of India Development Programmes. During the last under Credit Linked Capital Subsidy (CLCS) year, nearly 1,865 participants have benefited scheme. Further, the Corporation has from these programmes. disbursed ` 5.08 crores as State Capital subsidy towards General Machinery and ` 0.85 Though Commercial Banks are also crore towards purchase of Generators. offering assistance to industries, TIIC

continues to be the preferred institution for TIIC has so far assisted 1,09,214 units first generation entrepreneurs and people from with a cumulative sanction of ` 8,611.80 rural backgrounds and with little social crores. The total employment generated by support. the units assisted by the Corporation during the last year alone is around 16,500. Some of the important schemes operated by TIIC TIIC has registered a net profit for the 1. Micro/Small Enterprises Fund Scheme. eighth consecutive year. For the last year, the 2. Bill Finance Scheme for TNEB/ net profit has been 53.50 crores (provisional) ` TWAD/TANSI.

37 38

3. Working Capital Term Loan for Rice Mill be supported by a mentor, who will guide him units / for manufacturing units / for through the successful completion of the certain Service Sector units. project. The mentor should be a person of 4. Wind Power Projects. some social standing and not have come to 5. Technology Upgradation Fund (TUF) – Scheme for Textile Industry. adverse notice of the financial institutions and other authorities. So far 2,176 units have been 6. Equipment Finance Scheme. covered under the scheme with a sanction of ` 7. Transport Operators Scheme. 39.59 crores. During the current year, 3,000

Grow an Entrepreneur Programme beneficiaries are likely to be assisted under

this programme. As a part of its commitment to social obligations and in order to help a new Insurance generation of entrepreneurs, TIIC has introduced a “Grow an Entrepreneur” The Corporation is doing insurance Scheme aimed at promoting a new business and has generated income of ` 10.12 generation of entrepreneurs especially from lakhs towards commission as against the economically and social disadvantaged premium of ` 1.56 crores in the last year. The backgrounds, who are unable to offer the Corporation is expected to generate income of required collateral security. Under the scheme, ` 20.00 lakhs towards commission as against a loan of upto ` 5.00 lakhs is given without premium of ` 2.00 crores in the Financial Year collateral security and with a promoter's 2011-12. contribution of 10%. The entrepreneur must

39 40

Action Plan for Disbursal of Loan for TAMIL NADU NEWSPRINT AND PAPERS 2011-12 and 2012-13 LIMITED (` in crores)

YEAR SANCTION DISBURSEMENT COLLECTION The Government of Tamil Nadu 2011-12 1,110.00 870.00 745.00 established the Tamil Nadu Newsprint and

2012-13 1,220.00 950.00 780.00 Papers Limited (TNPL) in the year 1979 as a

Public Limited Company under the Companies Act, 1956. The initial capacity commissioned in the year 1984 was 90,000 tons. TNPL has increased the capacity in stages to 4,00,000 tons per annum and has emerged as the largest paper mill in India in a single location and the second largest in terms of paper production.

Mission

“To emerge as the market leader in the manufacture of world class eco-friendly papers, adopting innovative technologies for sustainable development”

41 42

Production and Capacity Utilization during day. The installed capacity of 4,00,000 the year 2010-11 metric tons per annum is expected to be

The production from Paper Machine No.1 achieved during the year 2011-12. (PM No.1) and PM No.2 was 2,44,782 metric ¾ TNPL started its pulpwood plantations for tons with 99.91% capacity utilization. Paper the first time during the year 2004-05 Machine No.3 was commissioned this year. In through two distinctive schemes namely, the first 72 days, the production was 20,262 farm forestry and captive plantation metric tons with 66.27% capacity utilization. schemes and so far 67,055 acres of land The overall capacity utilization was 96.18%. has been brought under cultivation.

Profit for the year 2010-11 A coverage of 1,00,000 acres by 2012- The profit before tax was ` 195.14 crore. 13 is being targeted.

Significant initiatives ¾ New products viz. Print Vista, a surface

sized paper, Pigmented paper, a superior ¾ The Mill Expansion Plan (MEP) was quality paper for very high end printing implemented at a capital outlay of and Platinum Copier in 70, 75 and 80 ` 1,000 crore to increase paper gsm were introduced in the new PM production capacity from 2,45,000 No.3. metric tons per annum to 4,00,000

metric tons per annum. The in-house Major initiatives scheduled for 2011-12 pulp production capacity was increased ¾ To convert some of the waste materials from 720 tons per day to 820 tons per namely, lime sludge and fly ash

43 44

generated in the process of manufacture Community Welfare Programme of paper into high grade cement, TNPL is Committed to being a socially setting up a 600 tons per day cement responsible corporate body, TNPL has been plant at a capital outlay ` 69 crore. The implementing several measures to promote project is scheduled to be completed by economic, social, environmental and cultural December 2011.

growth of the community in the local area in an ¾ To supplement the in-house pulp equitable and sustainable manner. The production to meet the full requirement, company sets apart every year 3% of profit TNPL is installing a 300 tons per day after tax of the previous year for Corporate state-of-art De-inking Plant (DIP) at a Social Responsibility (CSR) activities. capital outlay of ` 174 crore. This project is scheduled to be completed by March 2012.

¾ TNPL is also implementing the scheme of revamping the steam and power generation system at a capital outlay of ` 135 crore. The major equipment required for the scheme has been ordered out and the project is scheduled to be completed by April 2012.

45 46

TAMIL NADU CEMENTS CORPORATION TANCEM took over the defunct Stoneware Pipe LIMITED Unit from Tamil Nadu Ceramics Limited, at

Tamil Nadu is the 3rd largest producer of Vridhachalam. TANCEM became a wholly cement in the country with an annual installed owned Government Company from capacity of 32.27 million tonnes having 16 31.12.1994. major plants and 4 mini plants of which 2 TANCEM is a multi-product, multi- major plants are under the control of Tamil location organization with an annual gross Nadu Cements Corporation Limited (TANCEM) turnover of about ` 325 Crore. Cement is the with an installed production capacity of 9 lakhs principal product of the company. The other tonnes per annum. products are Asbestos Sheet and Stoneware

Tamil Nadu Cements Corporation Limited Pipes. (TANCEM) was established on February 11, TANCEM has been entrusted with the 1976 under the Companies Act as a fully responsibility of exploiting limestone from owned subsidiary company of Tamil Nadu various mines on behalf of Government of Industrial Development Corporation Limited Tamil Nadu for the manufacture and supply of (TIDCO). It took over the Cement Plant set up cement, primarily to meet the requirement of in 1970 at Alangulam by TIDCO. TANCEM various Government sponsored schemes aimed established one more cement plant at Ariyalur at providing housing for weaker sections, in 1979, an Asbestos Cement Sheet Plant at building infrastructure facilities for Educational, Alangulam in 1981 and one Asbestos Cement Health, Panchayat Raj Institutions etc. Pressure Pipe Plant at Mayanur in 1984.

47 48

TANCEM has been committed to serving Steps taken by the Government to control cement prices Public Interest by supplying the products to

Government Departments at reasonable price In view of more infrastructure and and providing sustainable employment developmental schemes implemented in the opportunities in economically backward areas. state of Tamil Nadu, the demand for cement Availing the price preference accorded by has been increasing from DRDA and other Government of Tamil Nadu and in view of the Government Departments. increasing demand and restricted availability of (1) It has been proposed to increase the 43 Grade OPC, TANCEM has diverted its entire capacity of TANCEM Units. As a part of production to meet the requirement of expansion programme, it has been initially Government Departments and Public Sector decided to increase the capacity of Alangulam Undertakings. Unit from the existing operating capacity of

TANCEM has been given the 2 lakh tons per annum to 4.00 lakh tons per responsibility to purchase cement from private annum and implementation is under process. cement manufacturers to meet the additional (2) TANCEM has also proposed to increase requirement of Rural Development and the capacity of Ariyalur unit at an estimated Panchayat Raj Department and TANCEM has outlay of ` 350 crore from the existing level of been instrumental in ensuring prompt supply of 5 lakhs ton per annum to 15 lakhs ton per cement to various Blocks of District Rural annum by adding a separate 10 lakhs ton Development Agency for the implementation of capacity plant. the rural development schemes.

49 50

(3) In order to facilitate cement at the ¾ Ariyalur cement works has earned a net affordable price to the contractors of PWD, profit of ` 18 Crore during the last year. Highways, Housing, Slum Clearance Board, ¾ The Stoneware pipe unit at TWAD, etc., TANCEM is co-coordinating with Virudhachalam has improved its the private suppliers to supply cement at the performance and achieved a net profit of rate of ` 235/per bag. ` 22.04 lakhs during the last year.

(4) As a measure to control the cement price, the cement is made available through Tamil Nadu Civil Supplies Corporation Limited to the poor and middle class people at a reasonable price.

(5) In order to control the cement price in the open market, TANCEM is exploring the possibility of importing cement upto 5 lakhs tonnes from other countries to provide cement at lesser cost.

Achievements and Proposed measures

¾ During the last year TANCEM has achieved a net profit of ` 840.39 lakhs (provisional).

51 52

TAMIL NADU MINERALS LIMITED of land from the Department of Handlooms at Tamil Nadu Minerals Limited (TAMIN), a Melur. 3 Nos. of Jumbo Gangsaws, 1 No. of Government of Tamil Nadu Undertaking, was Polishing Machine and other support established during April 1978. The main equipment, worth about ` 17 crore have been purpose of the organization is to exploit, imported from Italy. It is expected that the process and marketing of granite raw blocks, Plant will commence its production in March, granite products, major minerals and mineral 2012. The estimated Annual turnover is ` 50 based products. TAMIN is excavating Black, crore with a net profit of ` 8 crore per annum. White, Paradiso and Multi Colour Granites, (b) Mini Tile Plant at Melur Major Minerals like Limestone, Graphite, Silica

Sand, Vermiculite, Quartz and Feldspar in a TAMIN has constructed a Mini Tile Unit at scientific manner. the Melur site to cater to the domestic 1. Progress of new Projects demand. The Plant capacity is 1,08,000 sq.ft per annum with an investment of 60 lakh. 3 (a) TAMIN Granites Cutting & Polishing ` Unit at Melur 100% EOU block cutters, 4 Hand Polishing machines and one Edge Cutting machine have been erected. TAMIN is setting up an 100% Export Action is being taken to start its functioning. Oriented Granite Cutting and Polishing Unit at Melur, Madurai to produce 1,80,000 sq.mtrs of (c) TAMIN Granites, Manali

2 - 3 cm building slabs at an estimated project This factory was started in the year 1986 cost of ` 34.25 crore. TAMIN acquired 20 acres to produce building slabs, monuments and

53 54 sawn thick slabs. As the existing machinery at of ` 14 crore with a net profit of ` 2 crore. Manali unit is obsolete, the production of slabs Graphite Concentrate has been exported to was discontinued from 2008. It is proposed to Germany. Based on local and export demand, install new machinery and produce 1,20,000 it is proposed to enhance the production Sq. Metre of building slabs per annum for capacity of the factory. export. After installing new machinery, the annual turnover would be ` 30 crore with a net profit of ` 4 crore. The techno-economic feasibility report to modernize the unit at an investment of ` 12 crore was prepared which is under consideration of the Government.

2. Project likely to be taken in the near future

Expansion of Graphite Beneficiation Plant at Sivagangai

Graphite ore mined from TAMIN Sivagangai Graphite mines is beneficiated to Graphite concentrate with fixed carbon content upto 96% for use in the Industrial sector. This Unit produces approximately 6,000 Metric Tonnes of Graphite Flakes and earns revenue

55 56

TAMILNADU MAGNESITE LIMITED TAMILNADU INDUSTRIAL EXPLOSIVES LIMITED Tamilnadu Magnesite Limited (TANMAG) was formed in 1979 by taking over the Mines Tamil Nadu Industrial Explosives Limited operated by Salem Magnesite Private Limited (TEL) was incorporated in 1983 as a subsidiary situated at Kurumbapatti Reserve Forest area. of Tamil Nadu Industrial Development The Company produces Dead Burnt Magnesite Corporation (TIDCO) and the Plant in Katpadi and Lightly Calcined Magnesite from Raw started functioning from 1986. It became sick Magnesite. and was referred to Board for Industrial and Financial Restructuring (BIFR) in September The production and sales targets for the year 2011-12 and 2012-13 1992. The Company came out of the purview

Particulars 2011-12 2012-13 of BIFR in October 2001 after settling the Production Sales Production Sales entire loan dues to financial institutions on One (Quantity in Metric Tonnes) Raw 1,31,000 1,31,000 1,33,000 1,33,000 Time Settlement basis, as per the scheme Magnesite Dead 35,500 35,500 36,250 36,250 sanctioned. 547 staff and employees are Burmt Magnesite working in the Corporation. Lightly 17,500 17,500 18,000 18,000 Calcined Magnesite TEL is manufacturing quality explosives

used for mining and related activities. Over Last year, TANMAG has earned a profit the years it has built up a very good reputation before tax of ` 685.11 lakh (unaudited) and for in the market for maintaining very high quality the year 2011-12, the expected profit before standards. It has also received various safety tax is ` 981.07 lakh. awards. The Company supplies its products to

57 58 organised sector Companies like ONGC, TEL has entered into agreement with Singerani Collieries, Hutty Gold Mines, NLC, MAXAM Corporation, a Spain based explosives Hindustan Copper Limited, Visakapattinam manufacturing Company (which is amongst the Steel Plant, Rajasthan Minerals, TANCEM, top 3 Explosives manufacturers in the world) TANMAG and private traders. Its products are for the manufacture of value added explosives. also being exported to African, Latin American, Action plan for the year 2011-12 European, East Asian Countries and Australia.

The Company has obtained ISO 9001:2008, For the year 2011-12, the Company has ISO 14001: 2004 and OHSAS 18001:1999 budgeted a turnover of ` 61.36 crores with a certifications for maintaining quality, safety net profit of ` 54.79 lakhs. and pollution free environment.

Government of India has banned the manufacture, possession and sale of Nitro Glycerine (NG) Explosives, which contributed more than 70% of TEL’s turnover. This has adversely affected the performance of TEL and it started incurring losses since then. Subsequently, TEL diversified into newer products such as Emulsion Explosives and Mono Methyl Amine Nitrate which are well established now.

59 60

TAMIL NADU SALT CORPORATION The Corporation has obtained ISO LIMITED 9001:2008 certificates for Quality Management

System for processing and supply of Industrial The Tamil Nadu Salt Corporation Limited Grade and Fortified Salt Products. The (TNSC) was established in 1974 and Corporation is supplying Double Fortified Salt manufactures Industrial Grade Salt from its (contains Iron and Iodine) to all school going inception. This Corporation has got 5,524 acres children under Puratchi Thalaivar MGR Midday of leased land from Government of Tamil Nadu Meal Scheme in order to reduce Iron and at Mariyur Valinokkam Salt Complex, Iodine deficiencies in this vulnerable category. Valinokkam, Ramanathapuram District. This TNSC is also distributing adequately Iodised Corporation has expanded its activity over the Salt matching to PFA Act with IS 7224:2006 period of time into production of Iodised Salt through PDS at an affordable cost to eliminate and Double Fortified Salt (DFS), which contains Iodine Deficiency Disorders among the Iron and Iodine. The Corporation has so far common people.

developed 3,210 acres of the leased land.

There are 835 numbers of crystallisers for TNSC has undertaken efforts to develop producing about 1,75,000 tonnes of salt per the remaining undeveloped area of 2,200 acres annum. The Corporation employs directly and at its works in Mariyur Valinokkkam, indirectly about 1,119 local labourers for salt Ramanathapuram, at a capital outlay of ` 13.21 production and related activities support the crore. This development envisages TNSC to employment of about 150 persons. achieve a production of about 3.5 to 4 lakh

61 62 tonnes per year. TNSC has commenced the establishing new Chlor Alkali Industries. This work in this regard. will also enable TNSC to establish a unit for manufacture of Refined Free Flow Iodised Salt TNSC has been earning profits from for supply at competitive prices in Tamil Nadu 1990-91. Payments made to Government by and to the Southern States through Public TNSC for operations from 2001-02 to 2009-10 Distribution System. is ` 1233.82 lakhs.

Raking and scraping of salt are physically arduous occupations that are mechanized on an experimental basis during the year 2008-09 and continued during 2009-10 and 2010-11 also. This measure will assist the Corporation in overcoming labour scarcity and will also raise productivity. TNSC has ventured this with an initial investment of ` 20 lakhs.

The Corporation has requested the Government to allot 12,000 acres of lands in Vedaranyam Taluk in Nagapattinam District found to be potential for salt production. This acquisition will enable TNSC to expand its production for supply to industry and for

63 64

TAMIL NADU INDUSTRIAL GUIDANCE AND Inspector of Factories, Safety Certificate from EXPORT PROMOTION BUREAU Chief Electrical Inspector, Building plan The Government of Tamil Nadu approval etc., that results in considerable constituted Tamil Nadu Industrial Guidance and delay. To avoid the procedural delay, the Export Promotion Bureau (shortly called as Guidance Bureau functions as a Single Window Guidance Bureau) with the objective of Agency where all the relevant authorities meet “attracting major new investment proposals” at one place and accord a composite in into Tamil Nadu in January, 1992. The primary principle no objection to the projects. Last objectives of Guidance Bureau are: year, Guidance Bureau facilitated 20 projects

1. To attract major industrial projects into with a total investment of ` 3,233.27 crores Tamil Nadu; through single window process. 2. To function as Single Window Documentation Centre for major ASIDE Scheme investment proposals and Under the Scheme of Assistance to 3. To process the applications for grant States for Developing Export Infrastructure under ASIDE Scheme. (ASIDE), a State Level Export Promotion Single Window facilitation Committee (SLEPC) is considering and funding

To get the clearances/infrastructure the proposals for development of Export support, the investors have to approach Infrastructure in Tamil Nadu. Guidance Bureau different Government agencies for planning is the Convener of this Committee. During the permission, Fire Service Clearance, last year, the SLEPC sanctioned financial Environment Clearance, Registration with assistance to the tune of ` 20 crores.

65 66

DEPARTMENT OF GEOLOGY AND MINING carrying out mineral explorations. The Geology

Branch has made significant contribution in the Minerals form the basic resources for Mineral Explorations and has been responsible several important industries and contribute for locating mineral deposits of Limestone, substantially to the Gross State Domestic Bauxite, Garnet sands, Graphite, Iron ores, Product and Industrial growth. Minerals are Vermiculite, Silica sand, Fireclay, Quartz, considered to be the backbone for the Feldspar, Gypsum, Magnesite, Granites and a economic growth and deemed to be the wealth host of other important industrial minerals in of the country. The developmental activities the State, resulting in the setting up of Cement of the State and its economic prosperity are Plants, refractory, glass, ceramic industries, reflected by the availability of mineral wealth etc.. Apart from these, many mineral based and its prudent exploitation. Since the mineral industries and other mineral-dependent resources are “wasting assets” and non- industries have also come into existence over a replenishable, it is imperative that the period of time. The rich and varied mineral minerals should be scientifically exploited for resources of the State have contributed the judicial mineral conservation and effective handsomely towards the development and mineral administration to achieve optimum industrialisation of the State. Considering the mineral revenue. imperative need to enhance the mineral

The Geology Branch of the administration, a separate Department of Directorate of Industries and Commerce was Geology and Mining was formed by the set up in the year 1957 with the mandate of Government in April 1983.

67 68

The Objectives of the Department (vii) To take action against those engaged in

illegal mining / quarrying and (i) To expedite investigation of new mineral transportation of minerals. deposits by adopting modern exploration (viii) To increase the Mineral revenue through techniques. effective mineral administration. (ii) To make available mineral based

information / data to the interested The Department of Geology and Mining is entrepreneurs for setting up of mineral performing the following main functions:- based industries. 1. Mineral Exploration and evaluation of (iii) To encourage competitiveness in the minerals.

mineral industry through optimum use of 2. Geotechnical studies in the hilly areas of minerals. Nilgiris and Kodaikanal.

(iv) To ensure economic prospecting in the 3. Mineral Administration. State and protection of environment and Mineral Exploration ecological balance during the course of

mining and thereafter. Though the minerals are being exploited (v) To encourage the human resources to augment sizeable revenue to Government, development for meeting the the depletion of mineral resources is causing a requirement of mining and mineral based great concern. In this endeavour it has become industries. necessary to explore the remote areas also for (vi) To provide for safety and welfare of the the occurrence of valuable minerals and to people engaged in mining activities. adopt the state-of-the art technology for

69 70 optimum use of the minerals. In view of the Ranges of Kodaikanal taluk of Dindigul district increased market demands, systematic and and prepared the thematic maps, zonation planned reappraisal of all mineral deposit maps etc., deciphering the vulnerable points of occurrences have to be carried out at this landslide. The Geotechnical Cells created by juncture. the Government are functioning to study the

Geo-technical aspects and monitor the To cope up with the developing trend in landslides in the Hilly terrain of the Nilgiris and technology in the field of mineral investigation Kodaikanal. The Geo-technical cells are and to substitute the depleting mineral providing technical guidance to the District reserves which were identified decades ago in Administration in the landslide disaster various districts, the Government have created management and suggesting remedial and a separate exploration wing. The exploration preventive measures for safeguarding the lives wing has carried out the investigation for and properties in these vulnerable areas. Molybdenum, Gold, Platinum and minerals in and around the Chalk hills of Omalur and Further, the Geo-technical cells are Salem taluks of Salem district and furnishing feasibility reports in selecting areas Easwaramoorthypalayam village, Rasipuram for any construction activity in the hill areas taluk of Namakkal District. after studying and examining the safety and

Geo-technical studies in the Hill tracks of suitability of the site from the view point of the Nilgiris and Kodaikanal prevention of landslide.

The Geo-technical cells have studied the hill tracts of the Nilgiris district and Palani hill

71 72

Mineral Administration under the overall control of the Commissioner/ Director of Geology and Mining.

The Mineral Administration work includes The various Acts and Rules governing the the grant of mineral concessions for both major grant of mineral concessions are listed below: and minor minerals in accordance with the relevant provisions of the Act and Rules. (a) Mines Act, 1952. Ensuring scientific mining without affecting (b) The Mines Rules, 1955. environment, regulation of mining operations (c) Mines and Minerals (Development and Regulation) Act, 1957. for the conservation and development of (d) Tamil Nadu Minor Mineral Concession minerals, prevention of illicit mining and Rules, 1959. transportation of minerals, collection of (e) Mineral Concession Rules, 1960. seigniorage fee/royalty and thereby enhancing (f) Metalliferrous Mines Regulation, 1961. the revenue prospects of the State are the (g) The Forest (Conservation) Act, 1980. other related works of mineral administration. (h) The Forest (Conservation) Rules, 1981.

(i) Mineral Conservation and Development For the purpose of effective mineral Rules, 1988. administration, this department has (j) Granite Conservation and Development established District Offices and they are Rules, 1999. functioning under the charge of either a Deputy Mineral Revenue

Director or Assistant Director. The District The effective and diligent measures Offices function under the administrative taken by the Department in mineral control of the respective District Collectors and

73 74 administration have brought out considerable SUGAR INDUSTRY increase in mineral revenue for the State Sugar Industry exchequer. The Department of Geology and

Mining has been striving hard to show better Sugar Industry in Tamil Nadu improves progress in revenue generation for the the economic conditions of the farmers in the Government. The growth from ` 2.83 crores in rural areas. Tamil Nadu is one of the major the year 1983-84 to ` 670.57 crores, presently producers of Sugar in the Country and its bears testimony to the efforts of the contribution is about 7% of the Country’s total department. production. Sugar Industry generates direct and indirect employment to lakhs of rural E- Governance population in cultivation, harvesting, transport The Department of Geology and Mining and allied services. has initiated the vectorization of different Performance layers of cadastral maps of Salem District to prepare the Geographical Information System There are 47 Sugar Mills in Tamil Nadu of enabled mining tenement registry and mineral which 16 Sugar Mills are in Cooperative Sector, atlas. This will be useful to track the areas 3 in Public Sector and 28 in Private Sector. At under active mining and also help in detecting present, 44 Sugar Mills are functioning, i.e 16 illegal mining. Co-operative Sector Sugar Mills, 2 Public Sector Sugar Mills and 26 Private Sector Sugar Mills.

75 76

Production the Mills. The surplus bagasse produced in Co-operative and Public Sector Sugar Mills is During the current crushing season, all being sold to other users on tender basis. the Sugar Mills in Tamil Nadu have During the last financial year, a quantity of programmed to crush about 178.59 Lakh 33,974 Metric Tonnes of bagasse have been Metric Tonnes of cane and to produce 16.39 sold and a sum of ` 508.02 Lakhs has been Lakh Tonnes of Sugar with an average realized by Co-operative and Public Sector recovery of 9.18%. Sugar Mills.

Sugar Sales ii) Molasses The Tamil Nadu Co-operative Sugar Molasses is a valuable down-stream Federation Limited is the Nodal Agency to sell by-product of Sugar Mills, utilized for the Sugar produced by all the Co-operative and production of Alcohol, Chemicals and Cattle Public Sector Sugar Mills in Tamil Nadu. Feed. During the last financial year, 1.28 Lakh During the current sugar year, the Government Metric tonnes of Molasses have been sold and of India have permitted sale of 90% of the an amount of ` 3,323.24 Lakhs has been Sugar as Free Sugar and the remaining 10% of realized by the Co-operative and Public Sector the Sugar as Levy Sugar. Sugar Mills.

By-Products iii) Press Mud i) Bagasse Press mud is one of the by products of The by-product bagasse is used as fuel the sugar mills. By utilizing press mud, Vermi to generate steam and power for operation of Compost and bio compost are also produced in

77 78 the Sugar Mills. In some of the sugar mills, process and also to increase the quantity of enriched press mud is made by adding micro power for export to State Grid. nutrients and bio organisms. The entire Distilleries

quantity produced is distributed to the The two distilleries in cooperative sector sugarcane growers of the concerned mill. viz. Salem and Amaravathi Cooperative Sugar

Co-generation Mills, have produced 186.43 Lakh Litres of In Cooperative Sector, 3 Co-generation Alcohol during the last financial year and along Plants are functioning at M.R. Krishnamurthy with old stock sold 212.66 Lakh Litres of and Cheyyar Cooperative Sugar Mills with an Alcohol and an amount of ` 5,877.26 Lakhs installed capacity of 7.50 MW each and at have been realized.

Subramania Siva Cooperative Sugar Mills with Ethanol an installed capacity of 5.00 MW. All these The requirement of Ethanol for 5% mills are exporting power to the State Grid. It blending with Petrol in our State is about 6.25 has been decided to set up Co-generation crores litres per annum. So far eight Ethanol Plants in 12 Sugar Mills (10 Co-operative and 2 Plants having production capacity of 9.60 Public Sector Sugar Mills) with a capacity of crores Litres per annum were established in 183 MW at a total cost of ` 964.88 Crores. Tamil Nadu of which 2 Ethanol Plants have During the Co-generation Programme, 12 been set up in Amaravathi and Salem Sugar Mills will be modernized at a cost of Cooperative Sugar Mills with a capacity of ` 276.27 Crores to reduce the Power and 30 KLPD in each Mill. Further, establishment of Steam consumption in sugar manufacturing 45 KLPD Distillery cum Ethanol Plants each at

79 80

Cheyyar and M.R. Krishnamurthy Cooperative Sugar Mills at a cost of ` 36 crores each is in progress.

Revival of Madurantakam Cooperative Sugar Mills

Madurantakam Cooperative Sugar Mills was revived and during the trial crushing, 18,240 Metric Tonnes of Sugarcane was crushed and the trial crushing was completed on 27.4.2011.

The present Government will undertake efforts to improve the welfare of the cane growers as well as to improve the general performance of the Co-operative and Public Sector Sugar Mills so that the sugar mills in Tamil Nadu will achieve excellent status in the entire country. Further, all the weak and sick sugar mills will be revived and these mills will be expanded and modernized for the increased production of sugar and ethanol. S.P. VELUMANI Minister for Industries

81